Thailand's Precious Shipping announced that its wholly-owned Singapore subsidiary, PSL Energy, signed a joint venture agreement on June 4 to establish a ship-owning and ship-operating business.
The arrangement was reached with Malaysian firm Emstraits Navigation and Singaporean company Lianson Fleet to form an entity named Nusantara Orchid.
Precious Shipping stated that incorporation of the Singapore-based business is expected to be completed within one month. The company will own and operate High Tide, a second-hand medium-range tanker acquired by Nusantara Maritime, a company partly owned by Emstraits.
Nusantara Orchid will start with an initial paid-up capital of $50,000, divided into 50,000 shares with a par value of $1 each.
PSL Energy and Lianson Fleet will each hold a 45 per cent stake representing $22,500, while Emstraits Navigation will control the remaining 10 per cent share worth $5,000.
Under the pact, the board will consist of five members, with PSL Energy and Lianson Fleet appointing two members each, and Emstraits Navigation nominating one. PSL Energy intends to fund its equity contribution using existing working capital.